Trading 212: Complete Guide and Opinions on the New Online Trading Platform

trading 212

The name has a futuristic feel to it, its functionality is already above average and it has already won over millions of investors abroad. Trading 212 may well be the broker that will change online trading as we know it, will it achieve the levels of usability, completeness and performance of the eToro platform? We will see over time.

In the meantime, let’s start with a comparison between Trading212 and eToro and then take a closer look at the platform:

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Review Trading 212

Trading 212 is one of the first online trading platforms in Europe to be mobile-first, designed for mobile devices before the desktop interface. In the UK and Germany it is the most downloaded trading app on the Play Store and iOS, because it offers a simple and user-friendly approach to the markets, which looks to the future and also winks at beginners and young investors. But that’s just the beginning.

At Trading 212 you can invest in equities or CFDs by choosing between two separate accounts that can be swapped at any time, even if you only need to invest from £1 (we’ll explain what fractional shares are at Trading 212).

You also have a demo online trading account available without registration.

The trading commissions are unclear but quite low, especially if you trade underlying stocks and ETFs, and the regulations bode well for security. Does Trading 212 have flaws? Certainly, like any other service, and it is not for everyone. Let’s take a closer look at the broker and users’ opinions in this comprehensive review.

What is Trading 212

Trading 212 Ltd is an investment firm active since 2006 with offices in London and Sofia (Bulgaria). The broker operates throughout Europe providing an online trading platform for PCs and smartphones that is well known especially in the UK and Germany.

trading 212 app

The Trading 212 app has already been downloaded 14 million times and is making its way to Uk as an alternative to the best established trading platforms.

The Trading 212 broker allows you to trade mainly stocks and ETFs, but also commodities, currencies (forex and cryptocurrencies) and indices. Bonds are not traded.

Trading 212 promises a comprehensive service: training, 24/7 support, favourable commission trading conditions and security. The following table summarizes the pros and cons of the Trading 212 platform, which we will discuss in more detail in the following paragraphs.

Free demo account without registrationFree training, in English
Two separate accounts: CFDs and real assets (shares, ETFs)English service centre
Excellent trading app
FCA regulation
Split shares
Convincing opinions and reviews

Trading 212: How it works

Unlike eToro, the broker Trading 212 makes a clear distinction between investors who want to buy underlying shares or ETFs and those who prefer to trade short-term CFDs (Bitcoin, crypto, oil, leveraged shares, etc.):

  • Trading 212 Invest, for those buying underlying instruments;
  • Trading 212 CFD, for intraday trading.
trading 212 account

Basically, you have a dedicated account depending on whether you prefer to make a few long-term investments or be a trader and trade the markets on a day-to-day basis.

The two trading accounts are perfectly interchangeable. So if you open a Trading 212 Invest account but change your mind you can move to CFDs at a later date (e.g. to invest in Bitcoin or oil).

Login a Trading 212

trading 212 login

To log in to Trading 212 for the first time, simply click on this link and decide whether you want to create a trial account or a real account. In the first case you only need to enter a few details (you will verify your identity later).

With a real Trading 212 account, you will need to fill in the form fields with your personal details, provide information about your income and level of financial education, in accordance with European regulations. In any case, it won’t take more than 10 minutes and within a few days your deposit may already be uploaded to the platform, ready to start trading online.

How to Buy Shares on Trading 212

Buying shares and other financial instruments on Trading 212 is very easy. You can use the platform or the app for your smartphone and follow these easy steps.

First you select the asset you want to trade (buy or sell short, if you use CFDs). In this case we choose to buy Amazon shares. With the search bar at the top you can also find other very interesting stocks.

trading 212 stock

By clicking on the Amazon stock you can take a look at the chart, which is very clean and comprehensive (vaguely reminiscent of the TradingView layout). If you intend to proceed with trading Amazon shares click Buy at the top right.

trading 212 amazon shares

Now select the amount of shares you want to buy. As you can see, you can also invest in smaller lots without necessarily committing more than €2,000 for a whole Amazon share.

Set the stop loss and take profit limits, and when you are done click on Check Order and then Send Buy Order.

Unfortunately, the Trading 212 platform does not provide access to the financial market in our country.

Trading 212 and Fractional Shares

Fractional shares are exclusive to the Trading 212 broker. Often the big limitation of investing in shares is having to commit a lot of money to buy large-cap stocks, such as Amazon, Google or Tesla. This problem is partly solved with CFDs, but they are not for you if you want to invest for the long term.

Trading 212 has the solution. With fractional shares you can decide to invest in large companies by buying a part of their shares, starting from the thousandth part (0.001) and with a minimum investment of €1.

This is not a leveraged CFD trade: you are buying a portion of the underlying asset. This means that you do not pay any commissions or swap spreads, as you might pay if you keep an open position in derivatives.

Below is a video tutorial which explains how to buy fractional shares at Trading 212.

Trading Demo Account 212

The broker Trading 212 offers you a free and unlimited demo trading account without registration. Simply log in to the platform and start testing your account with 50,000 virtual euros.

If you like the software and would like to save your trading as a demo account, you can create a test account with just an email address and password. You will then have access to two separate demo accounts, one for CFD trading and one for stocks, which you can use on any device (including apps) for as long as you wish.

When you feel ready you can then switch to the real money account and start trading online in the financial markets after making your first deposit.

Is Trading 212 reliable?

Like any online trading platform we wonder if Trading 212 is trustworthy enough for us to choose as a tool to invest in the stock market. Trading 212 Ltd is regulated by the FCA (the UK regulator) and the Bulgarian Financial Supervision Commission, which is legal throughout Europe.

The broker has been operating since 2006 and this offers guarantees of account stability and proof that it has grown and distinguished itself from others over time. It shows high safety standards and no supervisory body has ever issued a warning against this company.

trading 212 reliable

In addition, as per regulations, clients’ funds are kept in separate accounts from those of the Trading 212 broker and protected by financial services compensation programmes in case of company default (up to 20,000 euros for European traders).

Trading 212: Minimum deposit and withdrawal

The minimum deposit at Trading 212 starts at just £1 but varies depending on the type of account you intend to use, as outlined in the table:

Payment method212 Invest Trading Account212 CFD Trading Account
Credit/debit card, PayPal, Skrill, ApplePay or Google Pay 1€10€
Bank transfer10€10€

As you can see, you can use a variety of deposit systems, from traditional bank transfers and credit cards to electronic payment systems such as PayPal or Skrill. You can also deposit directly from your smartphone using ApplePay or Google Pay digital wallets.

The same applies to withdrawals. On the 212 Invest Trading account you can withdraw money from as little as €1, while on the CFD account the minimum amount is €10. For withdrawals the same systems apply as for deposits

Trading 212: Commissions

The commissions charged by Trading 212 are very competitive. The costs are €0 if you buy shares or underlying ETFs, even if you trade online in foreign currency priced instruments.

trading 212 commissions
Comparison of Trading 212 and other Uk brokers

For CFDs you will be charged 0.5% commission for currency conversion and a variable swap depending on how long you decide to keep your position open.

There are no commissions for maintaining trading accounts. At Trading 212 you don’t even pay withdrawal and deposit fees.

Trading 212: Opinions

trading 212 trustpilot

Trading 212 is a particularly popular platform in Uk and abroad. The ratings on Trustpilot are excellent, indicating that the opinion of those who have already tried it is more than positive.

The platform has very low costs and offers a state-of-the-art approach to trading, designed for young investors and those who like to invest from their mobile phones.

Many users’ opinions praise its speed and ease of use, while some complain that the training video tutorials and some sections of the site are in English and difficult to understand.

Trading 212 or DEGIRO? Comparison and alternatives

Targeting both traders and long-term investors, many compare the broker Trading 212 with DEGIRO, the Dutch broker that is best known for its ETF offering.

Trading 212 offers a simpler and more user-friendly web and app platform than DEGIRO, which still provides a respectable trading experience.

DEGIRO beats Trading 212 in the selection of equity assets, specifically stocks, funds, bonds and ETFs. However, you cannot invest in cryptocurrencies or commodities as you can with CFDs at Trading 212.

DEGIRO also has higher trading conditions than Trading 212, although these are already reduced compared to many bank accounts. It also does not offer fractional shares, an incredible advantage that only Trading 212 has.

As mentioned above, another alternative to Trading 212 is eToro, another platform which allows you to trade both underlying assets and CFDs. With eToro you not only pay commissions on your investments, but you can also take advantage of the copy trading functionality to replicate the moves of experienced traders.

Trading 212 – Frequently Asked Questions

Is trading 212 safe?

The Trading 212 platform promises to revolutionise the online trading market by making it cheaper and smarter. But is it really reliable or is it a scam? Find out more in our guide.

Does Trading 212 pay dividends?

Yes. If you have opened a long position and the company pays out coupons, TradingView will pay you a dividend of the same amount. Open a free account.

How do I pay tax on Trading 212?

Exactly the same as with other international brokers. You will have to declare your trading account to the tax authorities and pay financial income tax (26%) on any capital gains. Find out more.

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